Zoneout:
Make a bootable then try using the edited mtkflash files from the link at the top of this topic. only have those files on the floppy,usb, whatever.
1. turn on PC with floppy/usb connected then 360 which is also connected (use the sata port closest to the front of the PC: SATA1)
2. once the floppy loads, type: mtkflash r /m orig.bin
3. should give you a bunch of drives to choose from; TURN OFF THE 360
4. Choose the VIA
5. Now turn on the 360
should read no prob if you do it exactly. I had the same prob as you and this was the only way it worked.